DUBAI (Reuters) - Dubai and its Gulf Arab neighbors are
developing hotels worth about $18 billion, including the
world's largest, according to data from a Dubai research firm,
as the region uses record oil wealth to diversify its economy.

The United Arab Emirates federation, of which Dubai is the
second-largest member, is leading the drive, building or
planning hotels worth about $12.7 billion, the organizers of a
hotel exhibition in Dubai said on Monday, citing data from
Dubai-based ProLeads.

Gulf states, including Saudi Arabia, Qatar and Bahrain,
"are in the midst of a massive construction boom," Maggie
Moore, exhibition director of the Hotel Show 2008, is quoted as
saying in a statement.

At 6,500 rooms, Dubai's $1.63 billion Asia-Asia Hotel will
overtake Las Vegas's MGM Grand as the world's largest hotel,
DMG Media, the organizers of the show, said in the statement.

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About 100 hotels will open in the UAE by the end of 2010,
adding 30,000 rooms, DMG said.

Dubai World said in August it will invest up to $5.2
billion in MGM Mirage <MGM.N> by buying shares and half of a
Las Vegas project, making the state-owned investment firm a
player in the biggest gambling destination in the United
States.